Delaware amended its historic preservation credit regulation. Taxpayers can apply the credit for historic property rehabilitation expenses against:
– corporate income tax liability;
– bank franchise tax liability; or
– personal income tax liability.
The amended regulation:
– eliminates the credit for work completed before the application for certification of rehabilitation;
– clarifies the circumstances for forfeiture or withdrawal of the credit;
– adds new certification requirements for certain costs;
– increases the application fee for taxpayers that do not own or occupy the historic property; and
– makes technical changes.
The regulation also includes transition provisions.
Taxpayers that complete a historic rehabilitation project must request a certification of completion. The request must now include a statement from a certified public accountant if rehabilitation costs exceed $750,000.
The regulation reduces the application fee from $250 to $100 for taxpayers that own or occupy the historic property. All other taxpayers must pay a fee of:
– $250 with their application for certification of historic property;
– 1.5% of the credit reservation with their application for certification of historic rehabilitation; and
– 1.5% of the credit reservation or award, whichever is more, with their application for certification of completion.
Taxpayers that started a project before November 11, 2018 must follow prior regulatory guidelines. They can also request to follow prior regulatory guidelines. To qualify, they must have applied for the credit before November 11, 2018 and must:
– show that information in their application for certification of historic property remains valid;
– submit their application for certification of historic rehabilitation by December 31, 2018; and
– meet all other program requirements.
Credits awarded to owner-occupied properties under the transition provisions cannot exceed $30,000.
Historic Preservation Tax Credit Regulations 900.1.0–12.0, Delaware Division of Historical and Cultural Affairs, effective November 1, 2018